Regarding the general release required for sale/assignment/transfer of a Cinnaholic franchise, what claims are specifically excluded from this release under the Maryland Franchise Registration and Disclosure Law?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The general release language required as a condition of sale and/or assignment or transfer shall apply except for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Any claims arising under the Maryland Franchisor Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the general release required as a condition of sale, assignment, or transfer of a franchise does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they do not waive their rights to bring claims against Cinnaholic under this specific Maryland law.
This protection ensures that Cinnaholic franchisees in Maryland retain their legal rights under state franchise law, regardless of any general release they may sign during the transfer process. This provision is designed to protect franchisees from inadvertently waiving rights granted to them by Maryland law.
Furthermore, the FDD states that any claims arising under the Maryland Franchisor Registration and Disclosure Law must be brought within three years after the grant of the franchise. This statute of limitations provides a specific timeframe for franchisees to pursue such claims.